Block, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Block is the subject of a report published by Hindenburg Research on March 23, 2023. The report, titled: “Block: How Inflated User Metrics and ‘Frictionless’ Fraud Facilitation Enabled Insiders to Cash Out Over $1 Billion,” alleges that the “’magic’ behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.” The Report adds that the Company “wildly overstated” its user metrics. Based on this report, shares of Block fell by more than 14.5% in intraday trading.

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Rockwell Automation, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Rockwell released its second quarter 2022 financial results on May 3, 2022. The Company revealed a net income decline of $361.1 million year-over-year. The Company also reduced its guidance for the full year due to “supply chain restraints.” Based on this news, shares of Rockwell fell by 14.5% on the same day.

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TAL Education Group

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. TAL Education is the subject of an article published by Seeking Alpha on March 14, 2023, titled, “TAL Education, Chinese ed-tech stocks slump on crackdown fears.” According to the article, “Chinese media reports indicated the company may have flouted government regulations.” The article also states, “TAL subsidiary Xueersi restarted courses that run counter to conventions put in place by Xi Jinping’s Common Prosperity drive. Specifically, courses were restarted in subjects like mathematics and English under the guise of permitted tutoring outside of core subjects. Under the ‘Double Reduction Policy’, tutoring in core subjects must be offered as a strictly non-profit business.” Based on this report, shares of TAL Education fell 10% on the same day.

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Mallinckrodt plc

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Mallinckrodt is the subject of two open letters released by The Buxton Helmsley Group, Inc. (“BHG”) on March 17, 2023. A letter addressed to Senators Elizabeth Warren and Sheldon Whitehouse claims that BHG is “delivering the results of an extensive investigation into financial misconduct at the Company involving an evidenced scheme of concealing asset value depreciation/impairment expenses, in violation of GAAP ASC 350, 360 and Regulation S-X, taking place both before and after the Company’s Chapter 11 Reorganization.” In the second letter, addressed to the Company’s management, BHG notes that, “This Company has already, with the same Chief Financial Officer running the books pre- and post-reorganization, laid out the Company’s standard for determining the fair value of assets securing capital structure interests, and is apparently continuing such misconduct through failure (post-reorganization) to record billions of dollars in asset value depreciation/impairment expenses, which are evidenced by simply applying their prior-professed internal standard for determining the fair value of assets securing the Company’s capital structure, and – therefore – asset value impairment.”

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Hesai Group

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Hesai issued a press release on March 16, 2023, announcing its unaudited financial results for the three months and full year ended December 31, 2022. The Company failed to disclose that in the final quarter before its initial public offering (“IPO”), it suffered from a “lower in-house plant capacity utilization rate.” This caused an increase in shipments of low margin products such as advanced driver assistance systems (“ADAS”) and light detection and ranging (“LiDAR”) systems. Based on this news, shares of Hesai fell by more than 10% on the same day.

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Array Technologies, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Array announced on March 15, 2023, that it would file an amendment to its previously filed Notification of Late Filing on Form 12b-25 with the SEC. The Company stated that it would be unable to file its Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report”) within the 15 day extension window, which ended on March 16, 2023. The Company postponed its fourth quarter and full year financial results to allow additional time to complete its year-end procedures. Based on this news, shares of Array fell by more than 6.4% on the same day.

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LivePerson, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. LivePerson announced its fourth quarter 2022 financial results on March 15, 2023, revealing a revenue decline and loss for the quarter. The Company disclosed that its WildHealth subsidiary had received a notice from Medicare that its reimbursement for services under the Medicare demonstrate program (the “Program”) would be suspended. The Company stated, “inherent uncertainty as to the timing and amount of further reimbursement for services rendered under the Program, the Company has elected to take a reserve for revenue associated with services delivered under the Program in the fourth quarter of 2022 for which payment has not yet been collected.” Based on this news, shares of LivePerson dropped by more than 49% in intraday trading on March 16, 2023.

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Boxed, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Boxed is the subject of a Wall Street Journal article published on March 14, 2023, titled: “Household Retailer Boxed is Negotiating With Lenders for Bankruptcy Sale.” The article details how less than two years after a merger with a special-purpose acquisition company (“SPAC”), Boxed might file for bankruptcy as it explores a sale of its business. Based on this news, shares of Boxed fell by 48.25% on the next day.

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Edgio, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Edgio disclosed on March 13, 2023, that it would restate its financial statements for the years ending 2020 and 2021 along with quarterly reports within those years. The Company admitted that its audit committee had “identified an error in the Company’s historic accounting treatment of Edgio’s Open Edge solution.” The error would also cause a delay in the Company’s upcoming annual report. Based on this news, shares of Edgio dropped by 15.5% on the same day.

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Amgen Inc.

According to the Complaint, the Company made false and misleading statements to the market. Amgen is the subject of claims by the U.S. government that it owed more than $3 billion in back taxes for tax years between 2010 and 2012. The government claims the Company also owed $5 billion for tax years between 2013 and 2015. The Company likely owed similar amounts for more recent years as it used a similar profit allocation to the past periods. The Company failed to allocate accruals to account for its outstanding tax liabilities. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Amgen, investors suffered damages.

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